If you’re looking for tax help in Canada this year, we’ve got you covered!
Many employees will be newly eligible for this deduction due to the requirement of working from home because of the pandemic.
“The biggest one for this year is the home office expenses deduction, claimed as employment expenses,” he said.
Vittoratos explained that unlike years gone by, a significant number of Canadians would be able to claim Canada’s work from home tax deduction this year.
In fact, so many people are expected to qualify for the deduction, the federal government has temporarily updated the method of claiming to make things simpler.
Using the new temporary flat rate method, eligible Canadians can claim $2 per day to cover their work from home expenses, up to a total of $400.
This could benefit anybody who has worked from home for more than 50% of the time for at least four consecutive weeks in 2020.
However, Vittoratos also wants Canadians to know that claiming the deduction the traditional way (via the detailed method) could be worthwhile if you have more complex expenses.
He encourages workers to “compute both methods and see which one is more advantageous. Don’t assume that the temporary flat rate method is best because it’s simpler.”
That wasn’t the only tax-time advice the specialist had for Canadians, either.
Vittoratos urged everyone to be mindful of tax changes when they’re initially announced, which is in the federal budget every year.
“Most people don’t get around to thinking about their taxes until the following year when they need to file, and by that time, it’s too late to benefit from the announced changes,” he explained.
The more you know, eh?